Get out of the rental market.
Everybody knows that sticking around in the rental market is essentially spending your salary every month to pay off someone else’s mortgage. It works well for a while, but eventually you’ll find that you’re draining your income source without reaching your own financial goals. While getting into a position where securing a mortgage may take time, there are exciting and innovative strategies available today that could help you become a homeowner sooner than you might be expecting. For example, steel kit homes give you an opportunity to design your own dream home while offering the flexibility to create a property you can actually afford. Explore your options before you sign yourself over to another long-term lease.
Buy pieces that last.
It’s tough to consider this piece of advice when your short on cash, but it will pay off in the long run. Avoid fast fashion, cheap furnishings, and short-term savings and focus on the bigger picture when making purchases instead. Before you buy something, consider whether it will retain its value or end up in the back of your cupboard within the next year or so. This is especially important when it comes to big purchases like cars - that second-hand cheapie you found online may look like a bargain, but when you consider the costs involved to keep it running, you could be pouring money down the drain.
Take note of waste.
Start paying close attention to your grocery shopping and consumption habits. For example, take a look at how much of your weekly shop ends up going off before being eaten, or going in the bin rather than being consumed. Many families head to the supermarket without proper lists, buy unnecessary ingredients, and waste money without meaning to by essentially purchasing food just to throw away later. Shop smarter by meal planning, making clear lists, and only buying what you’ll really use.
Manage credit sensibly.
Having a credit card is often seen as an all-out bad decision, especially for young people, but that’s not necessarily the case. Building a good credit score is essential if you want to land a mortgage in the future and create a solid financial future for yourself. Shop around for a credit card with great rewards and a low interest rate, and then be very, very careful about how you use it. That means no impulse buys, no big purchases, and a carefully scheduled repayment date each month that you meet no matter what. Using your credit card to pay for a small grocery shop and then paying it off on time each month is a great way to slowly but surely build up a solid credit score.